Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the competitive price
(This is also called an optimal two-part tariff.) What is the per-unit price it should charge, if any?
A) It should not charge a price per unit; just a flat fee to consume as much of the product as desired.
B) It should charge a range of prices from $40 to $12.
C) $12
D) $16
D
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Tariffs contribute to higher prices of textile products imported into the United States, but import quotas on textiles brought into the United States do not
a. True b. False Indicate whether the statement is true or false
What is the primary source of higher real wages?
a. labor unions b. the threat of a strike by a union c. increases in productivity d. increases in the supply of money
A type of corporation that combines the capital raising options and limited liability of a corporation with the federal taxation advantages of a partnership
What will be an ideal response?
Normal profit implies that
A. Economic profit must be negative. B. Firms will expand their scale of production. C. The factors employed are earning as much as they could in the best alternative employment. D. Economic profit must be positive.